Historical Movement
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(1) PADINI shares price completed small descending triangle pattern and breakout on Dec 12, 2014.
(2) However, PADINI shares price does not fall further incoming year, but it formed a bullish pattern - cup with handle and successfully breakout a long-term downward line on Nov 26, 2015.
(3) Thus, we able to calculate the first level of upward satisfaction: -
- RM2.362 - RM0.990 = 1.372
- RM1.795 + 1.372 = RM3.167
(4) Afterward, PADINI shares price entered a strong upward trend in the next three years and it completed 3 levels of upward satisfaction. We noticed that shares prices will enter a retracement when it meets the upward satisfaction level.
(5) When PADINI reached 3 levels of upward satisfaction, it formed a head and shoulders pattern at the top level. (Learning Point: If shares price reaches period high cum with high trading volume and form a head and shoulders charting, it is a red flag which shows investor is leaving the counter).
(6) Once shares price fall below the supporting neckline, PADINI shares price vaporized 43.49% of shares value in 12 trading days (it was a true nightmare for value investor) and it formed a falling wedge in next 297 trading days.
(7) Due to worldwide pandemic breakout, PADINI shares price again fall below the wedges pattern and able to calculate the first level of downward satisfaction: -
- RM3.150 - RM5.650 = -2.500
- RM4.107 - 2.500 = RM1.607
(8) PADINI shares price does not hit the 1st level of downward satisfaction, RM1.607, and it started to rebound at RM1.780. However, PADINI shares price fulfills the other 2 downward satisfaction levels (Red in color) which is calculated based on the neckline (RM4.187) and downward falling wedges. (Purple area)
Current Movement
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(1) After PADINI shares prices hit the period low at RM1.780, it started to bounce upward and there was the highest transaction volume 11.326M on Apr 29, 2020.
(2) With vertical transaction volume as a cross-reference, we able to conclude RM2.365 is a significant supporting level.
(3) If we are value investors, we should revalue our strategy to further invest in PADINI based on current economic development and new the pattern of consumer behavior, stay-at-home economy.
(4) if we are speculators, we need to wait for PADINI shares price to test the support line at RM2.365 and/or breakout short-term downward line.
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